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How large is the HRtech market today and how large is it expected to expand to over the next 2, 5 and 10 years?
Hello there! Thank you for your question. I understand that you want to find how large the HR Tech market is today and how large is it expected to expand to over the next 2, 5 and 10 years. The short version is that after searching extensively through corporate websites, industry reports, and trusted media sites. I’ve determined that the information you requested is not publicly available as there are not enough reports and articles available. However, I was able to find out that the total projected market size of the HR Tech industry for 2019 ranges from $16.254 billion - $16.586 billion.
The most important sources that I researched to answer your question are the 2015 Human Resource Technology Report published by Bersin by Deloitte and Crunchbase Insights
Below you will find a deep dive of my methodology and findings--
METHODOLOGY
After searching exhaustively, I haven't been able to find the content requested, or triangulate an estimate based on existing data. Please note that I made sure that the data I investigated was global, rather than data focusing on the US.
My search began with looking for recent, authoritative studies on the size of the HR tech global market through various search strings on Google. This strategy provided no relevant or credible sources except the HR Technology 2015 report published by Bersin by Deloitte.
I then focused on investment numbers and number of firms. I was able to find a detailed and insightful report on Crunchbase Insights about the financing history and financing trends of the HR Tech industry. I could not find an exact figure for the number of firms, nor could I find an estimated figure.
My third strategy was to focus on the future growth. I found many articles pointing to the future of the HR Tech industry, but not in financial terms. I used the 2014 market size figures given in the Bersin by Deloitte report and the 5-year CAGR rate-ranges to come up with a projection of the 2019 market size of the HR Tech industry.
HELPFUL FINDINGS
While I could not find a direct answer to your question, I was able to gather some information about this topic, which I think will be helpful for your project.
PROJECTED MARKET-SIZE OF HR TECH INDUSTRY IN 2019
According to Josh Bersin, the founder and Principal at Bersin by Deloitte, the HR Tech industry is worth $400 billion. The HR Technology 2015 report published by Bersin by Deloitte gives us the market size of the different segments/niches (Core HRMS, Recruiting, Learning Management, Performance/Compensation, Workforce Management, and Engagement, Recognition, Sensing) in the HR Tech industry in 2014. It shows the total market size of the industry being $15.1 billion in 2014. The report also gives us the 5-year CAGR rate-range for each segment.
Market size of segment in 2014 + 2014 market size of segment x Average 5-year CAGR rate for segment = Market size of segment in 2019
- For Core HRMS
- For Recruiting
- For Learning Management
- For Performance/Compensation
- For Workforce Management
- For Engagement, Recognition, Sensing
Therefore, the total projected market size (sum total of the results for the aforementioned segments) of the HR Tech industry in 2019 ranges from $16.254 billion - $16.586 billion.
INFORMATION AND STATISTICS ON INVESTMENT IN HR TECH INDUSTRY
Crunchbase Insights published a report in 2016 analyzing the investment activity in the HR Tech industry. For this report, they included the following segments/niches-
- Workforce Management
- Payroll Administration
- Human Resource Information Services
- Software based Human Capital Management
- Any tech-enabled platforms that help manage recruiting and staffing.
According to the report, investors made 383 deals, investing roughly $2.4 billion in HR Tech companies in 2015.
According to estimates in the same report, in 2016, investors made 426 deals to invest roughly $2.3 billion in HR Tech companies.
New Era Enterprises is the most active investor in HR tech companies, followed by Andreessen Horowitz and 500 startups tied for second place.
The most well-funded HR tech company is Zenefits, followed by FXiaoKe and Glassdoor in second and third place respectively.
NUMBER OF HR TECH FIRMS
I could not find any fixed figure or estimate for the number HR tech firms. However, I found some figures for 2 niches of HR tech.
POSSIBLE CONTINUED RESEARCH
In understanding what types of information are and are not publicly available on this topic, I’ve suggested and alternative route that you may be interested in researching:
Given that the specific figures for the HR Tech industry that match your criteria were not available, you could make your research more specific by focusing on different segments/niches in HR Tech, like the HR software industry.
CONCLUSION
To wrap it up, after searching extensively through corporate websites, industry reports, and trusted media sites, a direct answer to your question is not publicly available because there is a lack of relevant reports and articles available. However, I learned that the total projected market size of the HR Tech industry in 2019 ranges from $16.254 billion - $16.586 billion. If you’d like to continue research on any of the other topics I’ve outlined above, just let us know! Thanks for using Wonder!